Why did Spanish success at extracting gold from their colonies ultimately result in financial ruin?

Select the best answer from the choices provided.
Their actions flooded the world market with gold and devalued the precious metal to near worthlessness.
Spain did not have the commercial infrastructure to profit from its colonies. The gold went to other European countries.
The Spanish overmined their colonies, leaving them completely useless and drained of natural resources.
All of the answers are correct.

Question

Why did Spanish success at extracting gold from their colonies ultimately result in financial ruin?

Select the best answer from the choices provided.
Their actions flooded the world market with gold and devalued the precious metal to near worthlessness.
Spain did not have the commercial infrastructure to profit from its colonies. The gold went to other European countries.
The Spanish overmined their colonies, leaving them completely useless and drained of natural resources.
All of the answers are correct.

anonymous · Answer

@King.Void.